Tax News

IRS has $1.3 Billion In Refunds Waiting For 2006 Non-Filers

The IRS has announced that it has unclaimed refunds totaling more than 1.3 billion dollars waiting for the nearly 1.4 million taxpayers who have not filed 2006 tax returns. The IRS estimates that the median uncollected refund for 2006 returns is $804.

The absolute deadline for filing a past-due return and receiving a refund is 3 years from the original due date of the return. This makes April 15th, 2010 the last day to file a 2006 return to collect a refund. The same filing deadlines apply with the California Franchise Tax Board.

Federal Tax Credits For Consumer Energy Efficiency Upgrades Continue

We have prepared a number of returns for clients who have received the Federal Energy Tax Credit on their 2009 tax returns. These Federal tax credits for purchasing energy-efficient appliances, adding insulation and energy efficient windows and doors or roofs continue through Dec 31st, 2010. The credit is 30% of the cost with a maximum of $1,500 credit available.

2009 Filing Deadlines Fast Approaching

The deadlines for filing 2009 tax returns are just around the corner: Personal and Partnership returns are due April 15th. All returns not filed or extended by the due date will be subject to a late filing penalty.

To ensure completion of your return or timely filing of an extension, please contact our office as soon as possible. We can schedule an appointment to complete your return or arrange to file an extension for you.

Please remember, the extension is for filing your return but does not extend the date for paying any balance due. If you have a balance due to IRS or California, late payment penalties and interest charges begin at midnight following the due date. To avoid these penalties please arrange to have a payment sent to the appropriate agency along with your filing extension.

How To Handle Missing Form W-2's

Employees who have not received a W-2 from an employer should contact the IRS directly if the employer is not being cooperative. Once it's reported, the IRS will send a letter to the employer which includes a request that the employer provide a copy of the W-2 within 10 days. The letter also advises the employer of the penalties that may be imposed for failing to provide the W-2.

Employees who have contacted their employer and the IRS regarding missing W-2's and have not received the W-2 in time to file by the April 15th deadline may use Form 4852 'Substitute for Form W-2, Wages and Tax Statement' to estimate their wages and withholding on their personal tax return. Your final pay stub should contain year-to-date totals and can be used to prepare Form 4852.

2009 IRA Contribution Deadline

The deadline for making 2009 contributions to your IRA is April 15th. Contributions made by that date can be reported on your 2009 return, allowing you to increase both your federal and state refund this year. If you choose to make a 2009 contribution prior to the deadline be sure to indicate that it is for 2009 and NOT 2010.

FIrst-time Home Buyers Credit Expiring

The credit for first-time homebuyers is about to expire. In order to qualify for the credit, buyers MUST be locked in to a binding purchase agreement by April 30th, 2010 with closing completed by June 30th, 2010.

Foreclosure, Short-Sale and Loan Modification Tax Implications

As all too many of our clients are aware, the home mortgage crisis is far from over. The tax laws regarding foreclosure, short-sale and forgiveness of debt are complex and require advanced planning to avoid potentially severe adverse tax consequences.

If you or someone you know is facing the possibility of foreclosure or short-sale of their home please contact our office to schedule a free consultation with Karen or Gary. We will work with you to understand your particular circumstance and create an approach that will minimize or eliminate any tax owed due to the loss of your home.

Important Dates

 

Accountability News

Refer Three New Clients And WIN

Accountability thrives on referrals from our satisfied clients. As a way of saying thanks for your support, we're offering you a chance to win a 3-day, 2-night vacation at one of several popular destinations. If you'd rather have some help with your everyday expenses, choose $500 in rebates on groceries or gasoline!

Here's how it works: For every client you refer, your name will be entered into a drawing to win one of of two Vacation Packages that will be awarded. If you refer three or more clients, you win automatically — a vacation package is yours! Click here for more information.

Information For Perspective Clients Available

Choosing or changing tax practitioners can be a daunting task. We've added a new webpage with information for people who are looking for a tax preparer. Check it out!

Knowledge Is Power — Accountability Tax Seminars

Tax law is complex and confusing to most normal people. Along with all of the complexity, the tax code also makes it the responsibility of each individual tax payer to understand and fully comply with the law.

Unfortunately, during the crush of tax season Karen and Gary have only so much time with each client, limiting our opportunities to explain the impact of tax law on each individual's situation.

Beginning in 2009 we presented a series of five tax education seminars. Each seminar was designed to bring together groups of clients with similar interests, allowing us to discuss each client's individual situation in much greater detail than is possible during a tax preparation appointment.

Due to the great response the seminars received we will be repeating the series in 2010. Below is information regarding the first two the seminars.

Each seminar is free and open to the public. The seminars will begin at 6:30 and include a one-hour presentation on the topic, followed by a question-and-answer session. However, seating is limited! To reserve your seat email us. Please include the seminar(s) you're interested in, and the number of people that will be attending.

May 20th, 2010 —Tax Planning Strategies for Small Businesses

An overview of filing requirements and tax compliance for self-employed individuals. Topics to be covered include:

June 24th , 2010 — So, you want to be a landlord ...

Reporting rental income and expenses: An overview of tax issues related to owning rental property. Topics to be covered include:

See our Seminars page for more info.

Getting Ready For Your Tax Appointment

Tax law has always been complicated, and with all of the changes in the past few years it's become even more complex. For us, the answer to keeping up with all the changes is education. We complete our required continuing education each year, attend seminars, subscribe to numerous newsletters and journals and stay current with IRS updates and publications.

However, the key to a great tax return is still great records. To assist you in organizing your information we have tools and information available on our website. Visit our Getting Ready page.

To help keep you current during the year, we regularly post new information on our News page.

Food for Thought

The income tax has made more liars out of the American people than golf has. Even when you make a tax form out on the level, you don't know when it's through if you are a crook or a martyr. —Will Rogers

Tax Season Hours

(Jan. 18th - April 15th)
Monday - Thursday
9:00am - 9:00 pm
Friday & Saturday
9:00am - 5:00 pm

— Karen Spencer

President

 

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